Is a Batteries Plus Bulbs franchisee responsible for taxes related to the operation of the store?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that it is responsible for the payment of all income, capital, gross receipts, sales and other taxes arising out of or related to Franchisee's operation of the Store and will indemnify Franchisor and reimburse Franchisor for all such taxes that any jurisdiction (federal, state or local) in which the Store is located imposes as a result of Franchisee's operation of the Store or the license of any of Franchisor's intangible property in the jurisdiction in which the Store is located.
If more than one Batteries Plus® franchisee is located in such jurisdiction, they will share the liability in proportion to their Net Revenues from the franchised business, except in the case of sales taxes and gross receipts taxes, which will be divided in proportion to taxable sales to the franchisees.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, franchisees are responsible for all taxes related to the operation of their store. Specifically, the franchisee is responsible for paying all income, capital, gross receipts, sales, and other taxes that arise from operating the Batteries Plus Bulbs store.
Furthermore, the franchisee is obligated to protect Batteries Plus Bulbs from any tax liabilities resulting from the franchisee's store operations. This means the franchisee must reimburse Batteries Plus Bulbs for any taxes imposed by federal, state, or local jurisdictions due to the franchisee's operation of the store or the licensing of Batteries Plus Bulbs's intangible property in that area.
In situations where multiple Batteries Plus Bulbs franchisees operate within the same jurisdiction, they will share the tax liability in proportion to their net revenues. However, sales taxes and gross receipts taxes are an exception and will be divided based on the proportion of taxable sales made by each franchisee. This ensures that each franchisee contributes fairly to the overall tax burden based on their sales and revenue.